American Strategic Investment to Sell NYC Asset for $64M
This office building traded at a significant discount to its previous sale.
American Strategic Investment Co. has agreed to a term sheet to sell a New York City office building for $63.5 million. The asset, 9 Times Square, is anticipated to change hands within 120 days of the execution of a definitive purchase and sales agreement.
To aid with the proposed sale, ASIC previously secured an amendment to the loan encumbering the office property, which extended its maturity date to October, with the option of a further extension to year-end. Capital One had originated the $55 million note in 2019, according to CommercialEdge information.
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ASIC first declared the intention of selling 9 Times Square in May, during the investor conference call announcing the firm’s financial and operating results for the first quarter. Should the deal go through, to which there can be no assurance, CEO Michael Anderson said in prepared remarks that the net proceeds will go toward the acquisition of higher yielding assets.
The 166,650-square-foot building previously traded in 2014 for $170.3 million, the same source shows. Completed in 1926 and renovated in 2015, it rises 20 stories and features 20,750 square feet of retail space. Current tenants include Riptide Partners, SDGi, Makosi, Medallia, Greater New York Dental Meeting, Adelman Katz & Mond and MSA MODELS.
Situated in Midtown Manhattan, 9 Times Square is less than 1 mile from Rockefeller Center and one block from Bryant Park. Downtown Manhattan is some 2 miles north.
Manhattan office sales see slow rebound
The Manhattan office market had a slow start of the year, with no new projects breaking ground in the first four months of 2024, according to CommercialEdge research. Also down year-to-date through April were Manhattan sales. Investors traded $290 million in non-portfolio office transactions in the borough, down from $860 million in the same period of 2023.
One of the largest Manhattan office sales this year so far involved an 118,635-square-foot building in Upper East Side. Earlier this month, Bloomberg Philanthropies paid $560 million to RFR Holding for the property at 980 Madison Ave.
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